The firm said that it is looking to challenge established banks when it comes to retailer and consumer financial services
Flush from a successful round of funding, Calgary-based challenger bank Neo Financial Technologies Inc. said that it is looking to add lending products like mortgages to its suite of services.
The bank said earlier this week that it raised $64 million in its second round of funding, which was led by billionaire Peter Thiel’s Valar Ventures.
Aside from an expansion of its product line, the bank will use the raised funds to boost its financial market services and entice more retailers to enter its no-fee rewards MasterCard program.
Read more: Accenture on the Canadian fintech segment’s prospects
“How can we help all these retailers accelerate their own growth through fintech, while at the same time creating an ecosystem for consumers as well?” Neo CEO Andrew Chau told the Financial Post. “We worked with more than 30,000 small and medium-sized businesses, partners and national brands to enable them to do something that they hadn’t been able to do before, and it’s the reason why we started Neo in the first place.”
Neo said that it will be expanding its workforce substantially, as well.
“The revenue ramp from Series A to where they are now … it’s among the fastest if not the fastest,” said Andrew McCormack, founding partner at Valar Ventures. “You have to offer consumers in Canada a much better experience than what they’re getting from their existing bank.”
